Tax Revenue Rises to Record High for Third Straight Year
Figures released by the Ministry of Finance in July showed that tax and stamp revenues for fiscal 2022 were ¥71.1 trillion, a record high for the third consecutive year. Writing in the September/October issue of Japan Spotlight, Research Director Nobuo Iizuka notes that growth in tax revenues exceeding initial government estimates has become more frequent in recent years.
Contributions to the approximately 6% increase in tax and stamp revenues in fiscal 2022 included 1.7% in the income tax, 1.9% in the corporate tax, and 1.8% in the consumption tax.
While tax and stamp revenues are impacted by the changes in the tax system and shifts in economic conditions, they have been rising in recent years despite the nominal GDP growth rate falling short of the government’s economic outlook. This, he writes, maybe due to a bias toward underestimating the tax revenue outlook.
“Japan’s Tax Revenue Records Historical High for 3rd Consecutive Year,” Japan Spotlight
Profile of Research Director Nobuo Iizuka
Click on the link below to contact an expert or submit a question.